The long-term strategy of Gold prices to remain high for some time despite the global financial crisis, may be changed when the current Global economic crisis settles down. Most economists and experts think that the current economic crisis is a precursor to a depression.
Will gold prices still be above $1200 at the end of this decade? On one hand it is understandable that experts think that the global financial system will collapse. On the other hand they are also concerned about the long-term trends of world economy and they think that the current situation is a forerunner to a depression in the future.
Many experts do not want to see the collapse of the American dollar. This is because their belief is that the American economy can rebuild its strength after the global financial crisis. This is not true though.
Is the American economy really strong enough to prevent another Great Depression or financial crisis? The answer to this question is the true key to the gold market’s future.
Even though the current economic crisis has shown all of us the problems of the global economy, experts are positive that things will turn out okay in the long run. If you really want to invest in gold then it is a good idea to own gold now.
Experts warn that it is too early to expect changes in the gold price. But gold prices have been rising steadily over the past few years, due to gold demand from both consumers and investors.
If you want to buy gold and you do not have any money to buy gold, you can either borrow or save it. Investors that have used their funds to buy gold have got great returns on their investment, when compared to purchasing gold coins and bullion.
With the financial crisis in most countries the price of gold has shot up, even though the real value of gold coins and bullion is much less than the value of gold coins and bullion. As a result of this phenomenon from the people who bought gold before the crisis and sold it when the crisis settled down, have seen a significant increase in their gold investment.
The question is whether the gold prices will fall because of the financial crisis. No one knows, but many experts believe that the price of gold will rise once the financial crisis is over.
They expect the price of gold to rise, when the recession ends, as the selling is likely to begin again. Since gold is used for many purposes, most people will find reasons to sell their gold.
We would have a different result if the financial crisis was not there, and therefore the gold prices would have stayed much lower. The financial crisis is just one of the factors that could affect the price of gold.
It is also important to know that gold will rise when the world demand for gold grows, as more people realize the value of owning gold. If you want to buy gold then the best thing to do is to buy when you can.